“Should costing” estimates the ideal cost of a product or service based on optimal conditions and best practices, rather than historical costs. It involves analyzing and calculating the expected costs under ideal conditions, considering factors such as material costs, labor, overhead, and efficiency. The goal is to determine what the cost “should be” if the process is optimized and if there are no inefficiencies. This approach helps organizations set benchmarks, identify cost-saving opportunities, and improve budgeting and pricing strategies.
We specialize in Should Cost estimation, leveraging our manufacturing domain experts to precisely analyze part designs, evaluate manufacturing processes, and accurately calculate associated costs. We can analyze costs across various regions and identify cost-saving opportunities, aiding organizations in defining sourcing strategies, leveraging low-cost country sourcing, and making informed global purchasing decisions. As manufacturing experts, we can identify cost-saving opportunities in product designs, value analysis (VA), and value engineering (VE) for parts and assemblies, leading to significant potential savings for organizations.
We can create detailed cost templates, develop cost calculators, analyze Bill of Materials (BOM), evaluate purchasing data from SAP exports, and generate reports which will help purchasing decisions. We provide comprehensive purchasing data analysis and create detailed Excel reports to support strategic sourcing and decision-making.